New Delhi, Oct 05, 2015: “With the rate current cut of 50 bps, there is a clear sense of urgency from the regulator to push the economic growth rates and this is exactly what we expected from the regulator. With the pro-growth stance of the RBI, it gives a clear hint to India Inc to push for growth, take investment decisions as it can now foresee rates to soften further.

What also gives RBI the relief and headroom for the rate cuts is the inflationary pressures that are expected to stay well within the comfort zone of the RBI. These rates cuts will surely lift the sentiment of India Inc, but the relief will only come when the banks follow the RBI’s footsteps and reduce their rates too as the corporate will get ready to push the throttle. With 125 bps rate cut already done till now, in the coming six months, a 50 bps more cannot be ruled out.”